Comments on: Opening an Ice Cream Store http://turnkeyparlor.com/icecreambusinessblog/2010/07/23/opening-an-ice-cream-store/ Ice Cream Business Equipment and Consulting Fri, 03 Feb 2012 03:41:20 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Donita Naylor http://turnkeyparlor.com/icecreambusinessblog/2010/07/23/opening-an-ice-cream-store/comment-page-1/#comment-2970 Donita Naylor Wed, 17 Aug 2011 22:46:17 +0000 http://turnkeyparlor.com/icecreambusinessblog/?p=1093#comment-2970 Dear Julikay, I'm a reporter at the Providence Journal newspaper, a colleague of Linda Borg. We did a story about you and your daughter in 2002, and now we're doing another story for the 10th anniversary of 9/11. I'd like to interview you and your husband and daughter, if possible, for the story, which is due at the end of August. Could you email or call me? I'm at 401 277-7411. Thank you so much! Dear Julikay,

I’m a reporter at the Providence Journal newspaper, a colleague of Linda Borg. We did a story about you and your daughter in 2002, and now we’re doing another story for the 10th anniversary of 9/11. I’d like to interview you and your husband and daughter, if possible, for the story, which is due at the end of August. Could you email or call me? I’m at 401 277-7411. Thank you so much!

]]> By: Julie Chambers http://turnkeyparlor.com/icecreambusinessblog/2010/07/23/opening-an-ice-cream-store/comment-page-1/#comment-2944 Julie Chambers Mon, 04 Jul 2011 22:40:14 +0000 http://turnkeyparlor.com/icecreambusinessblog/?p=1093#comment-2944 I wish that I would have had this information about 3 years ago!!!! I would have helped me out so so much!!! Great write up!!! Julie I wish that I would have had this information about 3 years ago!!!! I would have helped me out so so much!!! Great write up!!! Julie

]]> By: Sheree http://turnkeyparlor.com/icecreambusinessblog/2010/07/23/opening-an-ice-cream-store/comment-page-1/#comment-2893 Sheree Wed, 01 Jun 2011 03:00:55 +0000 http://turnkeyparlor.com/icecreambusinessblog/?p=1093#comment-2893 We are looking to start a frachise. Where do we go to get financial info to determine COGS,unit revenues, operating expense and other financial reports to help us in our decision? We are looking to start a frachise. Where do we go to get financial info to determine COGS,unit revenues, operating expense and other financial reports to help us in our decision?

]]> By: Julikay decarvalho http://turnkeyparlor.com/icecreambusinessblog/2010/07/23/opening-an-ice-cream-store/comment-page-1/#comment-2844 Julikay decarvalho Thu, 07 Apr 2011 23:00:20 +0000 http://turnkeyparlor.com/icecreambusinessblog/?p=1093#comment-2844 My parents own an old home in a historical location in A small town in Maine. There is no mortgage and I have the capital to start the ice cream parlor by taking equity from the home. This would only be a summer and spring business! Can this work? My parents own an old home in a historical location in A small town in Maine. There is no mortgage and I have the capital to start the ice cream parlor by taking equity from the home. This would only be a summer and spring business! Can this work?

]]> By: Neil Williams http://turnkeyparlor.com/icecreambusinessblog/2010/07/23/opening-an-ice-cream-store/comment-page-1/#comment-2749 Neil Williams Sun, 06 Mar 2011 00:57:24 +0000 http://turnkeyparlor.com/icecreambusinessblog/?p=1093#comment-2749 Hi David. Thanks for your post. Hopefully you'll get a few more people giving this question a shot, but here goes mine.. The fact that you already own 2 ice cream stores is a big plus. If you are making a profit at those stores, then you could apply the following formula. Take the total annual rent from one of your existing stores and divide it by the total annual sales. For example, if you pay $1500 a month, that's $18,000 rent per year. If you are selling $180,000 per year, take the $18,000 rent, divided by the $180,000 per year sales and that tells you the rent to sales % is equal to 10% (or .10 for formula purposes) So, you could then find a break even sales point for the new store by doing the following. $3000 rent for the new location per month is 36,000 per year. $36,000 divided by .10 = $360,000. So, with this formula, you would need at least $360,000 in annual sales to make close to the same $ that you would make at the other stores. If the new store "other expenses" aside from the rent are the same or lower than your existing stores (labor, utilities, etc) then you will make more money at the new store because of the much higher sales revenue. This "other expenses" number will be key and might help a little toward not needing quite the $360,000 in total sales, but this analysis is a quick and easy way to get a feel for reality. So, in summary, find out what you are paying in rent as a % of sales at your successful stores and then divide $36,000 by that % to get your projected sales revenue to turn a profit #. Thanks, Neil Hi David. Thanks for your post. Hopefully you’ll get a few more people giving this question a shot, but here goes mine..

The fact that you already own 2 ice cream stores is a big plus. If you are making a profit at those stores, then you could apply the following formula.

Take the total annual rent from one of your existing stores and divide it by the total annual sales. For example, if you pay $1500 a month, that’s $18,000 rent per year. If you are selling $180,000 per year, take the $18,000 rent, divided by the $180,000 per year sales and that tells you the rent to sales % is equal to 10% (or .10 for formula purposes)

So, you could then find a break even sales point for the new store by doing the following. $3000 rent for the new location per month is 36,000 per year. $36,000 divided by .10 = $360,000. So, with this formula, you would need at least $360,000 in annual sales to make close to the same $ that you would make at the other stores. If the new store “other expenses” aside from the rent are the same or lower than your existing stores (labor, utilities, etc) then you will make more money at the new store because of the much higher sales revenue. This “other expenses” number will be key and might help a little toward not needing quite the $360,000 in total sales, but this analysis is a quick and easy way to get a feel for reality.

So, in summary, find out what you are paying in rent as a % of sales at your successful stores and then divide $36,000 by that % to get your projected sales revenue to turn a profit #.

Thanks,

Neil

]]> By: david mcgough http://turnkeyparlor.com/icecreambusinessblog/2010/07/23/opening-an-ice-cream-store/comment-page-1/#comment-2748 david mcgough Sat, 05 Mar 2011 23:07:29 +0000 http://turnkeyparlor.com/icecreambusinessblog/?p=1093#comment-2748 I currently own two ice cream stores and have the opportunity to buy another one. The owner of the building wants over $3000 a month in rent. I do not want to be open in the winter. very slow. not sure if i can handle this rent all year long. What would a store have to make for income to carry a $3000 lease. income would only be coming in through the spring and summer. six months worth of revenue. good location but not sure if it is that good. I currently own two ice cream stores and have the opportunity to buy another one. The owner of the building wants over $3000 a month in rent. I do not want to be open in the winter. very slow. not sure if i can handle this rent all year long. What would a store have to make for income to carry a $3000 lease. income would only be coming in through the spring and summer. six months worth of revenue. good location but not sure if it is that good.

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